A partial paymen is made on the date indicated Use the Unite

A partial paymen is made on the date indicated. Use the United States Rule to determine the balance due on the note at the date of maturity. (The effective date is the date the not was written). It\'s not a leap year.

Principle Rate Effective Date Maturity Date Partial Amount Payment Date

$8000 4% March 22 December 5 $5,000 August 30

Solution

Number of days between March 22 and August 30 is

5 months 8 days = 161days

So Interest = 8000*161/365 * 4/100 = 141.15

Amount = 8000+141.15 = 8141.15

Amount paid = 5000

New principal = 8141.15-5000 = 3141.15

From August 30 to December 5 number of days = 97

So Amount at maturity = 3141.5( 1 + ( 97*4 / 365*100))

= 3174.89